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V3483-20 2 December 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

School transport and canteen services exempt from VAT; uniforms and translations taxed at 21%

A private school seeks clarification on VAT treatment for services such as transport, canteen, extracurricular activities, materials sales, trips, and translations. The DGT determines which services are exempt and which are taxable, as well as how to apply the VAT deduction.

The question raised

Whether said operations are exempt from Value Added Tax. Deductibility of Value Added Tax quotas incurred in the course of its activity. Headings of the Tax on Economic Activities in which registration is required.

The DGT's ruling

Regulated teaching and extracurricular activities are exempt from VAT if they meet subjective and objective requirements. Canteen and school transport services are ancillary and are exempt. The sale of uniforms and school supplies, as well as the translation of degrees, are subject to 21%. For the deduction of quotas, the entity must apply the pro rata rule when performing exempt and taxable operations. Regarding the IAE, the entity must register under headings for teaching, transport, extracurricular activities, clothing trade, and travel agencies depending on the nature of each service.

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